Taylor Co. bills a client $48,000 for services provided and agrees to accept the
ID: 2352605 • Letter: T
Question
Taylor Co. bills a client $48,000 for services provided and agrees to accept the following three items in full payment: (1) $7,500 cash, (2) computer equipment worth $75,000, and (3) to assume responsibility for a $34,500 note pay related to the computer equipment. The entry Taylor made to record this transaction includes which one or more of the follow.a. $34,500 increase in liability account
b. $7,500 increase in the Cash account
c. $7,500 increase in a revenue account
d. $48,000 increase in an asset account
e. $48,000 increase in a revenue account
f. $34,500 increase in an equity account.
Explanation / Answer
Taylor Co. bills a client $48,000 for services provided and agrees to accept the following three items in full payment: (1) $7,500 cash, (2) computer equipment worth $75,000, and (3) to assume responsibility for a $34,500 note pay related to the computer equipment. The entry Taylor made to record this transaction includes which one or more of the follow.
a. $34,500 increase in liability account
b. $7,500 increase in the Cash account
c. $7,500 increase in a revenue account
d. $48,000 increase in an asset account
e. $48,000 increase in a revenue account
f. $34,500 increase in an equity account.
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